ESMA through challenges, risks, threats and opportunities in the sphere of sustainability.

ESMA is a European authority that oversees the financial markets, protecting the investors from abuse and improving stability and efficiency in the entire financial system. Due to the human activities the temperature is rising considerably causing the climate change. Climate change is responsible for different risks, and it has caused, and it is causing nowadays significant natural damages to our ecosystems and human and cost-related loss. Financial system plays a crucial role because it can manage and allocate capital towards a more sustainable economy and greener activities to better contrast and mitigate the climate change. Innovation and research can help in this crucial and urgent challenge. This paper aims to analyse and bring to the surface the pivotal work that ESMA is doing suggesting regulations and guidelines to all the stakeholders and to several actors all around Europe. The main scope of this paper is to acknowledge these challenges in order to better understand and discover new strategies to reduce climate change while protecting and helping investors to do better decisions. ESMA is facing very important challenges, it will not be easy to fight and solve this problem. Finally, another important pillar that ESMA is focusing on is the discovery of new findings and strategies to be used in the future contributing to the preservation of the future generations.